Halifax industrial
Halifax economy
Benefiting from a strong underlying infrastructure network and connectivity to major airports, ports and highways, the Halifax Industrial Market has recorded impressive performance over the past few years. Burnside Business Park is the dominant business park in Halifax and is the largest in Atlantic Canada, being home to 2,000 businesses and 30,000 employees, representing 12% of Halifax’s workforce. Halifax Gate offers a strategic location close to both the Woodside Industrial Park, which is Dartmouth’s second largest industrial park, and is a 10-minute drive to the Burnside Business Park. The strong fundamentals outlined above, in addition to accelerating e-commerce trends and limited land availabilities has resulted in tightening market conditions with a current availability rate of 2.4%. Although we have seen some headwinds to the overall investment market in Canada, these headwinds have been offset by all-time high market fundamentals for industrial assets in Halifax, and across the country. Industrial rents in Halifax have hit an all time high of $10.90 PSF. Additionally, rents on new high-bay supply are being recorded between $16.00 PSF and $18.00 PSF. Market conditions are expected to continue to tighten as demand for industrial space continues to outpace new supply with limited industrial development land opportunities of scale available in Halifax. Investment activity in the Halifax Industrial market has been highlighted by ProREIT and Crestpoint’s partnership in purchasing +3,000,000 SF across 40+ buildings in the Burnside Industrial Park. ProREIT is experiencing over 40% increase to industrial rents on renewals nationally, and their holdings in Halifax are no exception. Additionally, industrial land has seen significant increases to values, as land trades are approaching $1,000,000 per acre, which is up ± 100% over the past three years.
Source: nationalgeographic.co.uk
Halifax is home to a strong, well-diversified economy with a combination of the highest concentration of health care facilities in Atlantic Canada, large seafood harvesting, ocean and transportation industries, a growing technology sector, Canada’s largest military infrastructure cluster, the post-secondary hub of the region, and the regional base for most major finance, insurance, and real estate companies. The City’s entrenched position as Atlantic Canada’s economic focal point attracts regional talent and elevates local industries to grow beyond the region. Between, 2016 and 2021, Halifax had the fastest growing urban core in Canada growing 26.1%, and it was the second fastest growing city in Canada in 2022, posting a 4.5% growth rate. Halifax’s population is 480,000, accounting for ± 48% of the provincial population of just over 1,000,000 people. Halifax’s economic forecasts are strong, far outpacing national averages for population growth, GDP growth, and immigration totals. In recent years, Nova Scotia has experienced rapid economic growth, outperforming provincial averages, and this economic growth has been fueled by investment and immigration. There has been substantial public and private investment into the Halifax market in recent years, including the Federal Government investing $47.5 million into the port of Halifax to improve the systems in place for the transportation of goods. The Federal Government also invested $36 million into the Halifax Stanfield Airport air cargo facility. These investments highlight Halifax’s position as a future global transit hub. Additionally, the Irving Shipyard in Halifax is the most advanced shipyard in North America and the combined Canadian Navy contract is the largest public outsourcing contract in Canadian History, with an estimated 30-year life span for as many as 15 combat vessels with a value exceeding $60 billion.
Source: halifax.ca
$16-$18 Net Rents Achieved on new industrial supply
$10.90PSF All Time High Average Rents
1.1M SF Of new supply under construction
Zero Availabilities over 30,000 SF available in the Dartmouth market
Halifax Gate | pg. 18
Source: halifaxstanfield.ca
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